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2 Consider a firm in a perfect market with 80 shareholders who each own 1 share worth $10. In addition, you own 20 shares (for
2 Consider a firm in a perfect market with 80 shareholders who each own 1 share worth $10. In addition, you own 20 shares (for a firm total of 100 shares), and you are trying to fire the management. To appease you, the management has offered to purchase your 20 shares at $9 per share. How would this change the value of the shares held by the other shareholders? Select one alternative: O Their share value would decrease to $7.75 O Their share value would decrease $8.75 There is not sufficient information provided to determine the impact O Their share value would increase to $10.25 Their share value remains unchanged O Their share value would increase to $11.25
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